Apollo Tyres today said it will increase the prices of its products next week, the fourth such instance since January, on account of the rising cost of natural rubber.
"Natural rubber prices are increasing day by day and to offset the pressure, we will increase the prices of our tyres. We will be announcing the exact quantum of price hike next week," Apollo Tyres Chief Financial Officer Sunam Sarkar told PTI.
The company has hiked prices thrice this year so far, in January, May and June. Overall, the prices of tyres across segments have increased by 8 per cent to 10 per cent this year.
The prices of Apollo Tyres' products are likely to be raised on both the OEM (original equipment manufacturers) side and the retail side.
The price of the company's passenger car tyres ranges from Rs 1,200 to Rs 10,000, while its commercial vehicles tyres cost around Rs 8,000 to Rs 15,000 per unit. Its total domestic capacity is about 1,000 metric tonnes a day.
Tyre prices have been increasing in the recent past due to rising natural rubber costs. All manufacturers have hiked prices by about 10 per cent since January this year. A further hike of up to 25 per cent in tyre prices during the remainder of this fiscal has been signalled by the industry.
Natural rubber prices have increased by over 150 per cent during the last one-and-a-half years, touching Rs 170 per kilogram from Rs 65 per kilogram in December, 2008.